Advances in Economics, Business and Management Research, volume 193

Proceedings of the BISTIC Business Innovation Sustainability and Technology

International Conference (BISTIC 2021)

How Green Perceived Value and Green Perceived Risk

Influence Customer Loyalty Through Customer
Satisfaction
Zaqqi Al Amin1,*Titis Shinta Dhewi2
1,2
Department of Management, Universitas Negeri Malang
*
Corresponding author. Email: titis.shinta.fe@um.ac.id

ABSTRACT
The study aims to determine the effect of Green Perceived Valueand perception of green risk towards customer loyalty
through customer satisfaction. This research is quantitative research using descriptive research and design explanations.
The population in this study was at The Body Shop customers in Malang. The samples taken in this study were 104
respondents. Calculated using Daniel & Terrel. Then the instrument feasibility test uses validity and reliability tests.
The analytical techniques use descriptive statistical analysis and partial analytical least squares (PLS). The results
showed that Green Perceived Value has positive and significant effect on customer satisfaction, then customer
satisfaction has positive and significant effect on customer loyalty, then Green Perceived Value has positive and
significant effect on customer loyalty, and Green Perceived Valuehas positive and significant effect on customer loyalty
through customer satisfaction, as well as Green Perceived Risk has positive and significant effect on customer
satisfaction , therefore, the green risk has negative effect and a significant to customer loyalty, then Green Perceived
Risk has positive and significant effect on customer loyalty through customer satisfaction

Keywords: Green Perceived Value, Green Perceived Risk, Customer Loyalty, Customer Satisfaction

1. INTRODUCTION Green Marketing approach on the product area is

Nowadays, the number of people seeking information
about the products to be used are increasing.
Especially on products that are high involvement
people buy not only in terms of price and packaging
but more than on the background of such products.
Consumer behaviour is increasingly critical to make
the company think to create strong branding that
should attract consumers. As at this time, some
companies promote green marketing for communities
who are concerned about the environment.
People are beginning realize the environmental
damage caused by the behaviour of purchasing goods
and services made by human beings themselves.
Finally, the society that feels the environment has been
damaged and also polluted causing global warming.
According to [1] has been raised awareness of the
environment evidenced by successful marketing
activities signifying green issues through symbols,
green design, advertising campaigns on a regular
basis, clean life.
believed to increase the integration of environmental
issues on all aspects of the company's activities. As
expressed by [2], says that green marketing is
described as a business organization or company
designing, promotion, price and distribution of
products that do not harm the environment.
Customer loyalty is a deeply held commitment to
buying or supporting products or services that are liked
in the future despite the influence of the situation and
the potential marketing efforts cause customers to
switch. The company strives to foster customer loyalty
by delivering the best products and services so that
customers feel satisfied and slowly grow loyalty to
continue using the company's products or services.
Customer satisfaction can be felt after comparing
performance or perceived results compared to its
expectation. It can be said satisfaction or
dissatisfaction is the conclusion of the interaction
between hope and experience after using the service or
service provided. By providing the best product and

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service number one consumer satisfaction will Customer satisfaction variables have a grand mean
increase and will raise loyalty. of 4.18 customers are very satisfied after using The
Body Shop products due to change.
In this case researchers will conduct research on
customers of The Body Shop in Malang. The Body A. Evaluation of measurement Models (Outer
Shop known as the green product which present in Model)
Indonesia since 1996 using a franchise system to 1. Indicator Reliability, used by looking at the
expand its market share, the first outlet in Indonesia is magnitude of the variance of indicators/items
in Pondok Indah Mall, choose (PIM) as the first outlet to explain the latent construct.
because (PIM) has a landmark of branding in Table 1. Indicator Reliability
Indonesia where most of its consumers are expatriates.
Here is an overview of inter-variable relationships. Loadin
P Keteranga
Variabel Item g SE
Value n
Factor
3. RESEARCH METHOD
PNH 0.07 <0.00 Reliabel
0.699
The research design is descriptive and 1 5 1
explanatory research that explains causal relationship PNH 0.07 <0.00 Reliabel
between variables through hypotheses test so that it is 0.774
Green 2 5 1
possible to get conclusions. Perceived
Value PNH 0.07 <0.00 Reliabel
0.686
The population are the customers of The 3 5 1
Body Shop in Malang. The sampling technique used is PNH 0.07 <0.00 Reliabel
0.787
purposive sampling, that are The Body Shop’s 4 5 1
customers who have bought the product 3 times or PRH 0.07 <0.00 Reliabel
more. Using its calculation, the sample number is 104. 0.818
1 5 1
The instrument used in this study is by spreading a poll
PRH 0.07 <0.00 Reliabel
or questionnaire. The instruments include a closed 2
0.738
5 1
questionnaire consisting of several questions, and each Green
question has five alternative answers available based PRH 0.07 <0.00 Reliabel
Perceived 0.667
3 5 1
on Likert Scale. Risk
PRH 0.07 <0.00 Reliabel
4. RESULT 0.801
4 5 1

Based on the results of the research on 104 PRH 0.07 <0.00 Reliabel
0.821
respondents can be found the following overview: 5 5 1

The description of the respondent by gender KP 1 0.07 <0.00 Reliabel

0.852
Customer 5 1
shows that the respondents in this study were mostly Satisfacti
female (81%), 20–24 years old (85%), as a student on KP 2
0.852
0.07 <0.00 Reliabel
5 1
(84%), and with an expenditure of 1.1 million – 2
million (40%). LP 1 0.07 <0.00 Reliabel
0.650
5 1
5. DISCUSSION LP 2 0.07 <0.00 Reliabel
0.645
5 1
The Green Perceived Value variable has a grand
mean 3.68 that has the meaning that The price and Customer LP 3 0.07 <0.00 Reliabel
0.912
Loyalty 5 1
quality of The Body Shop products are well suited.
LP 4 0.07 <0.00 Reliabel
The Green Perceived Risk variable has a grand 0.864
5 1
mean of 2.95 that has the meaning that customers still
do not understand the description of the given product, LP 5
0.776
0.07 <0.00 Reliabel
resulting in an oddity that does not conform to 5 1
environmentally friendly design.
Customer loyalty variables have a grand mean 3.44
Indicators PNH1-PNH 4, PRH1 – PRH5, KP1 – KP
that has the meaning that the customer will buy back
2, and LP1 – LP 2 results in a loading factor greater
The product The Body Shop if it has expired.
than 0.60. Thus the indicators of PNH1-PNH 4, PRH1

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– PRH5, KP1 – KP 2, and LP1 – LP 2 are considered is 0087 or 8.7%, it can demonstrate that the diversity
reliable in measuring every existing indicator. of customer satisfaction variables is explained by
green value perception, Green Perceived Risk and
2. Internal Consistency Reliability, is intended to
customer loyalty of 8.7%, but has weak prediction
test whether an item/indicator of the instrument
power towards customer loyalty.
can be used to perform more than twice the
measurement with accurate results. Perceived Then a Adjusted R-Squared customer loyalty
Value variable, green risk perception, customer variable worth 0481% or 48.1% it is interpreted that
loyalty and customer satisfaction is greater than the diversity of customer loyalty variables is described
0.7 then all indicators that measure the variables by the Green Perceived Value variable, the Green
are reliable. Perceived Risk which has strong predictive power2.
Table 1 Reliability Test
Table 3 Adjusted R-Square
Variable Composite Reliability
Variable Endogen Adjusted R-Squares
Green Perceived Value 0.826
Customer Satisfaction 0.087
Green Perceived Risk 0.880
Customer Loyalty 0.481
Customer Satisfaction 0.842

Customer Loyalty 0.882

3. Convergent validity, is intended to test
correlation between items/indicators in
measuring the construction by using the
Average Variance Extracted (AVE). According
to the table above, it is known that the whole
results in a value greater than 0.5 then all
indicators that measure the variable are valid.
Table 2 Convergent Validity
Variable Ave Keterangan
Green Perceived 0.545 Valid
Value
Green Perceived Risk 0.595 Valid
Customer Satisfaction 0.726 Valid
Customer Loyalty 0.604 Valid
4. Discriminant Validity, Aims to test the
items/indicators of two construct there is no
correlation between the construction indicators.
AVE quadratic roots green value perception.
Green risk perception, customer loyalty and
customer satisfaction yield greater value
compared to other AVE squared roots. Thus the
respondent had no difficulties in answering the
questionnaire statement.
B. Evaluation of structural models (Inner Model)
Adjusted R-Square Can be used to describe the
influence of a specific exogenous latent variable
against the endogenous latent variable The Adjusted
value of the R-Squares variable customer satisfaction
The effect size value resulting in variable Green
Perceived Value to customer satisfaction of 0059 less
than 0.2 belongs to small category. The effect size
value resulting in the Green Perceived Value variable
towards customer loyalty of 0450 more than 0.35
including large categories. The effect size value of the
resulting Green Perceived Risk variable to customer
satisfaction is 0051 less than 0.2 including small
category. The effect size value generated by the Green
Perceived Risk variable against customer loyalty is
0.006 less than 0.2, including small categories. The
effect size value generated by the customer
satisfaction variable on customer loyalty of 0052 is
less than 0.2, including small categories.
Table 4 Effect Size
Variable Effect Size
Green Perceived Value – 0.054
Customer Satisfaction
Green Perceived Value – 0.450
Customer Loyalty
Green Perceived Risk – 0.051
Customer Satisfaction
Green Perceived Risk – 0.006
Customer Loyalty
Customer Satisfaction - 0.052
Customer Loyalty
The value of Q2 predictive relevance customer
satisfaction variables has a value of 0.112 and 0489
which means it has a relevance predictive due to the
Q-squared value generated by endogenous variables

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(customer satisfaction) > 0 and (customer loyalty) > 0 acccepted; coefficient 0171 with P Value of < 0.001.
Thus H2 is accepted; coefficient 0662 with P Value of
5. Goodness of fit (GoF), Used to measure the
0.013. Thus H3 is rejected; coefficient 0042 with P
evaluation fit overall model
Value of 0216. Thus H4 is rejected’ coefficient 0238
Table 5 Goodness of Fit Model with P Value of 0.001. Thus H5 is accepted;
coefficient-0104 with P Value of 0085. Thus the H6 is
Model Fit and Hasil Kriteria accepted; and coefficient 0041 with P Value of 0223.
Quality Indices
Thus H7 was rejected
Average path 0.284, P value ≤ 0.05 5.1. Discussion
coefficient (APC) P<0.001
(significance
level = 5%) Customer's overall assessment of the benefits of
products or services between those received and
Average R- 0.301, P value ≤ 0.05 provided by customers of The Body Shop, as well as
squared (ARS) P<0.001 long-term expectations and the need for
(significance
environmentally friendly products, overall indicators
level = 5%)
include Emotional Response, Behavioral Price, social
Average adjusted 0.284, P value ≤ 0.05
value and monetary value. Based on a descriptive
R-squared P<0.001 analysis, it is known that the Green Perceived Value
(AARS) (significance variable has a grand mean value of 3.68 that has the
level = 5%) meaning that The price and quality of The Body Shop
products are well suited.
Average block 1.047 acceptable if <=
VIF (AVIF) 5, ideally <= 3.3
Customer wishes for negative environmental
Average full 1.473 acceptable if <= consequences regarding customer behaviour on the
collinearity VIF 5, ideally <= 3.3 purchase of a product The Body Shop, some indicators
(AFVIF) are, (1) There is a possibility that something wrong
Tenenhaus GoF 0.431 small >= 0.1,
with the environmental performance of the product.
(GoF) medium >= 0.25, (2) It is possible that this product does not work well
large >= 0.36 for its eco-friendly design. (3) It is possible that you
will get losses if you use this product. (4) It is possible
Sympson's 0.800 acceptable if >= to use this product to negatively affect the
paradox ratio 0.7, ideally = 1 environment. (5) Using this product will damage the
(SPR) reputation of green or imagery. Based on a descriptual
R-squared 0,990 acceptable if >= analysis it is known that the Green Perceived Risk
contribution ratio 0.9, ideally = 1 variable has a grand mean of 2.95 that has the meaning
(RSCR) that customers still do not understand the product
description provided resulting in an oddity that does
Statistical 0.800 acceptable if >= not conform to environmentally friendly design
suppression ratio 0.7
(SSR)
Customer loyalty is The customer's commitment to
Nonlinear 0.600 acceptable if >= buy back The Body Shop products consistently, as the
bivariate 0.7 indicators of this variable are makes regular repeat
causality purchase, purchase across product and service lines
direction ratio and refers others. Based on the descriptive analysis, it
(NLBCDR) is known that the customer loyalty variable has a grand
mean of 3.44 which has the meaning that the customer
will buy back The Body Shop product if it has expired.
The analysis of PLS is a tool to measure variables
directly and indirectly so that it can conclude the Response from customer’s experience after
relationship between Green Perceived Value(X1), consuming The Body Shop products is to fulfil the
Green Perceived Risk(X2), customer loyalty (Y) and needs of the expectations or exceed the expectation.
customer satisfaction (Z). Here is a explanation of the Customer satisfaction is measured by the satisfaction
analysis PLS: of cognitive models and the satisfaction of the
affective Model namely Cognitive Model Satisfaction
According to result can be interpreted line coefficient and Affective Model Satisfaction.
0245 with P Value of < 0.001. Thus the H1 is

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Cognitive Model Satisfaction is the response or
reviewer over the experience of customers consume
The Body Shop products at The Mall Olympic Garden
on the basis of rational thinking (functional benefits of
THE product).
Affective Model Satisfaction is the response or
assessment of the customer experience of consuming
The Body Shop products on the subjective basis,
aspirations and experiences (emotional benefits of the
product). Based on The descriptive analysis that The
customer satisfaction variables have a grand mean of
4.18 customers are very satisfied after using The Body
Shop products due to change.
Based on the results of this study was obtained the test
results of green Nlai perception positive and
significant to customer satisfaction in The product The
Body Shop, said the higher the value of a product then
the customer will be more likely to settle for The
product The Body Shop. Customers of The Body Shop
feel the price and quality provided very in accordance
with the expectation of the customer so that customers
feel the satisfaction functionally.
Based on the results of this study obtained the test
results of customer satisfaction positive and
significant towards customer loyalty in The product of
The Body Shop, can be said the higher the sense of
satisfaction of a product, the customer will tend to be
loyal to The product The Body Shop. Customers of
The Body Shop feel The benefits after using The
product because of The change so that customers feel
the loyalty and will buy back the product if it has
expired.
Based on the results of this study was obtained the test
results that The Green Perceived Value is positive and
significant towards customer loyalty The Body Shop
products, this shows the higher Green Perceived Value
customers will likely be able to increase customer
loyalty because each customer who has purchased The
Body Shop Product 3 times feel the price and quality
is appropriate and show the level of loyalty when the
product purchased has expired customers will buy
back the product.
The results of this study can be noted that there is a
positive and significant influence between the Green
Perceived Value of customer loyalty through customer
satisfaction. This means that Green Perceived Value is
positive and significant towards customer loyalty
through customer satisfaction of The Body Shop
customers. Green Perceived Value felt by customers
with the equaled price and quality of the product
resulted in customers feel the benefits given after use
and will buy back if the goods have expired.
Based on the results of this study can be noted that
there is a positive and significant influence between
the Green Perceived Risk to customer satisfaction in
the customer Body Shop. Proven with the risk that
there is by paying parking, sacrificing time to buy does
not change customers to dissatisfied with The product
The Body Shop.
Based on the results of this study can be noted that
there are negative and significant influences between
Green Perceived Risk towards customer loyalty in The
customer Body Shop at Mall Olympic Garden. This is
comparable to that of the value of the line coefficient
below-0104 showing the higher Green Perceived Risk
will increase customer loyalty, because customers
have not thought of risk that there is a costly price and
have to pay for parking.
Based on the results of this research can be found that
there is a positive and significant influence between
the perception of green risk to customer loyalty
through customer satisfaction of The customer's Body
Shop, but in this discussion the variable customer
satisfaction can not be used as a mediator between The
perception of green risk to customer loyalty seen from
the line coefficient result of 0041.
6. CONCLUSIONS AND SUGGESTIONS
The description of the Green Perceived Value
variable has the meaning that the price offered and the
quality given to the customer is already in accordance
with customers ' expectations
The description of Green Perceived Risk variable
has the meaning that the customer is not thinking about
the risks faced such as parking, distance traveled far
enough and sacrificed the time to buy products The
Body Shop.
The description of customer satisfaction variables
has the meaning that the majority of women have
benefited after using The Body Shop products both
functionally and emotionally which can help to
preserve The environment.
Customer loyalty Variable description has The
meaning that The customer will buy back The product
The Body Shop if The product has expired.
REFERENCES
[1] A. Prothero, P. McDonagh, and S. Dobscha,
“Is green the new black? Reflections on a
green commodity discourse,” J.
Macromarketing, vol. 30, no. 2, pp. 147–159,
2010.
[2] A. Manongko, “Green Marketing Dan
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Pengaruhnya Terhadap Keputusan Pembelian

Melalui Minat Membeli Produk Organik
(Studi Pada Pelanggan Produk Organik di
Kota Manado).” Universitas Brawijaya,
2011.

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